NASDAQ:TCX Tucows Q4 2023 Prepared Remarks Earnings Report $16.44 -0.52 (-3.07%) Closing price 04/25/2025 04:00 PM EasternExtended Trading$16.44 0.00 (0.00%) As of 04/25/2025 04:01 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History Tucows EPS ResultsActual EPS-$2.14Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ATucows Revenue ResultsActual Revenue$86.96 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ATucows Announcement DetailsQuarterQ4 2023 Prepared RemarksDate2/22/2024TimeAfter Market ClosesConference Call DateThursday, February 22, 2024Conference Call Time5:05PM ETUpcoming EarningsTucows' Q1 2025 Prepared Remarks earnings is scheduled for Thursday, May 8, 2025Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckInterim ReportEarnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Tucows Q4 2023 Prepared Remarks Earnings Call TranscriptProvided by QuartrFebruary 22, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Welcome to Tuca's 4th quarter 2023 management commentary. We have pre recorded prepared remarks regarding the quarter and outlook for the company. A Tuca's generated transcript of these remarks with relevant links is also available on the company's website. In lieu of a live question and answer period following these remarks, shareholders, analysts and prospective investors are invited to submit questions to Tucows' management. Please submit questions via email to irtucows.com until Thursday, February 29th. Operator00:00:33Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the TUCAS website on Tuesday, March 12th, at approximately 4 pm Eastern time. We would also like to advise that the updated Tucows quarterly KPI summary, which provides key metrics for all of our businesses for the last 8 quarters, as well as for full years 2021, 2022, and 2023, and also includes historical financial results, is available in the investor section of the website, along with the updated Ting build scorecard and investor presentation. Now for management's prepared remarks. On Thursday, February 22, Tucows issued a news release reporting its financial results for the Q4 ended December 31, 2023. That news release and the company's financial statements are available on the company's website at tucows.com under the investors section. Operator00:01:34Please note that the following discussion may include forward looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the forms 10 ks and 10 Q. The company urges you to read its security filings for a full description of the risk factors applicable to its business. I would now like to turn the call over to Tucows' President and Chief Executive Officer, Elliot Noss. Go ahead, Speaker 100:02:07Elliot. Thanks, Monica. We finished 2023 with positive momentum in all of our businesses. Tucows adjusted EBITDA for 2023 outside of Ting was $59,600,000 and with Ting was $15,500,000 at the higher end of our annual guidance range. This was driven by robust growth from Wavellow and consistent performance of Tucows domains and offset by our continued investment in TIG. Speaker 100:02:38Tucows consolidated revenue grew 10% year over year and a strong finish to the year helped drive Tucao's operating cash flow to $9,000,000 in the 4th quarter, up from $2,900,000 in Q4 of last year. We also repaid a further $11,500,000 on the balance of the daunting syndicated loan this quarter, which takes us to $28,000,000 paid down in 2023. Now that we've continued deleveraging and are squarely focused on addressing the financing challenges of the Ting business, which spilled over to TCX. We are more and more getting back to Tucows being a cash generating machine, which is the right place to be in today's macroeconomic environment. Again, this year, we've authorized a buyback program for up to $40,000,000 of Tucows stock. Speaker 100:03:31We do this every year, whether or not we can foresee using it at the time we do the authorization. This is a formality. Now, we'll hear from the heads of each business, as well as from our CFO, Dave Singh, who will cover our financial results in detail. The first speaker is Dave Warwick, Chief Executive Officer, Tucows Domains. Go ahead, Dave. Speaker 200:03:52Thanks, Elliot. As we close out our fiscal 2023, I'm particularly pleased that TCAS domains grew revenue and gross margin on a quarter over quarter basis through successive quarters of 2023. Our core business is healthy and we're rolling out new products for our resellers. And importantly, Tucows Domains continues to generate cash for the company that is being used to pay down the debt and build the runway for Tucows long term growth. In Q4, we saw slight gains across all our top level metrics, including domains under management and transactions. Speaker 200:04:30Revenue for domain services for the Q4 was 61,800,000, dollars up 2.5 percent from $60,300,000 for the same quarter last year. Gross margin was $18,900,000 also up 2.5% from the same quarter last year. And Domain Services adjusted EBITDA, which was $10,800,000 in the 4th quarter, was up 2% from Q4 of last year, as we continue to be attentive to managing expenses. The results were driven by an increase in the number of transactions in Q4, up 2% and domains under management that were up slightly year over year. I would like to highlight that within our industry, there is a range in the quality of new domains being registered and our growth continues to be concentrated in higher quality and legitimate domain registrations. Speaker 200:05:24Looking at the results from the segments of our business, in our wholesale channel, revenue for Q4 was up 2% compared to Q4 of last year and gross margin was essentially unchanged year over year. Within the wholesale channel, Domain Services gross margin was up 4% in Q4 compared to the same period last year, while value added services gross margin was down 8%. I'll note that the decline in the Domains aftermarket that I covered in the last couple of quarters is no longer a factor for value added services. The Q4 decline in value added services was actually a result of something we periodically do at the resellers request, which is to move their customers from the wholesale business to our retail business, which shifts the associated revenues and margin from value added services to retail. In our retail channel, revenue was up 4.5% and gross margin was up 8% year over year. Speaker 200:06:28The outsized retail margin was a result of the shift of customers I mentioned, which started in Q4 and will impact retail margin numbers over the course of 12 months. Our combined overall renewal rate at 76.5 percent in Q4 across all Tucows Domains brands remains within our historical range and above the industry average. I also have a short update and further background on the new billing and provisioning service and the automation tools that enable resellers to transition to cloud hosting. We have these in the hands of a number of resellers who are providing us feedback and helping us iterate. If you would like more detail on these new services, please refer to my comments last quarter. Speaker 200:07:18And as a reminder, we've developed these new products within our existing cost structure, which means we're able to prove the concept with investment that is invisible to investors and improve it along the way without major cost impacts. It is the margin of these new products that is so compelling to us. Tucows Domains has been generating about 75,000,000 in gross margin for several years in a mature and competitive industry with limited prospects for growth. We've been very comfortable operating with the razor thin margins of our current domains business. In fact, as many of you know, we have successfully turned this into a moat around the business. Speaker 200:08:04However, the margins from these two new opportunities are significantly higher than our typical domain name margins. Deploying higher margin products is critical for us to meaningfully get beyond the 75,000,000 gross margin range. I am optimistic about the potential for these new services and I will keep you apprised of their progress. Now over to Justin Reilly, CEO of Wavelo. Speaker 300:08:33Thanks, Dave. 2023 marks Wavelo's 2nd full year as an independent business. A year ago and at Investor Day, I shared how pleased I was with the foundation laid to generate $25,000,000 to $30,000,000 in revenue. As we sit here today, Wavelo generated $38,700,000 in revenue in 2023, averaging north of a 50% compound annual growth rate over the last 2 years, while other B2B SaaS companies' growth rates nearly halved over the same period. Gross margin for the full year 2023 was $36,000,000 up from $21,400,000 in 2022. Speaker 300:09:13Adjusted EBITDA was $10,600,000 outperforming our upgraded guidance of $4,000,000 to $6,000,000 and up from $3,900,000 last year. This full year performance represents what this business can be when its customers reach a level of scale on the platform. That said, I want to be clear that we expect growth to come in much lower in 2024 as we invest in new customers and battle an increasingly competitive software market. This is in the context of a startup macro environment that is in the midst of a flight to quality. Remember, our slight step back in profitability is everyone else's cash burn. Speaker 300:09:51In the quarter, Wavellow's revenues were $9,500,000 down 13.8% from Q3 and up 113% from Q4 2022. Gross margin was $9,200,000 in Q4, down 12.3% from Q3 and up 142% year over year. Adjusted EBITDA for Q4 was 2 point $6,000,000 down 38% from Q3 and up 3 28% year over year. The quarter over quarter trend represents a couple of things. First, we recognize extra deferred revenue from DISH every year in Q3, which provides a bump across all metrics in the Q3. Speaker 300:10:34And second, DISH's shift in focus from prepaid to postpaid as those subscriber bases haven't yet stabilized. In addition, the adjusted EBITDA trend quarter over quarter reflects an increased investment in our growth teams to support the coming years. The Wave Low story is yet another chapter in a 30 year history of Tucows leveraging existing assets, competencies and relationships in service of customer and shareholder value. This was true in OpenSRS. It was true in both Ting businesses and it is now true in Waveflow. Speaker 300:11:07An intense focus on simplicity, efficiency and customer experience drives our day to day operations, as well as our long term view of the opportunity in telecom software. It is at the heart of that opportunity that I'm happy to announce that since I last reported, we've added 3 new customers to the Waveflow family. These represent a mix of net new logos and cloud upgrades that I discussed last quarter, further reinforcing the strong appetite for telecoms to move to the cloud and shift towards more customer centric software. As I shared at Investor Day, we are seeing solid traction with small to midsize ISPs with a focus on automating end to end billing and provisioning, as well as adding mobile as a value added service. Unlike MNOs, these operators are on their 1st REIT platform and have a tremendous opportunity to leapfrog the legacy software pitfalls in telecom. Speaker 300:12:00In the quarter, the team continued the trend of adding new qualified opportunities to the pipeline. With this steady pipeline, our focus is on building a machine that elegantly closes and onboards customers without all of the pain that is all too common in these implementations. We have a busy year ahead of us navigating the laborious procurement cycles that telecom is famous for. I'll remind investors that our sales and marketing team is small but mighty, representing a much smaller spend as a percentage of revenue than our competitors. In 2024, we expect to grow the team in service of growing the pipeline, while focusing on efficiency and staying well below the market on spend. Speaker 300:12:39Thanks for listening. And now over to Elliot. Speaker 100:12:43Thanks, Justin. Q4 was another very strong quarter of construction for TIG, resulting in 27% year over year growth of completed serviceable addresses, taking us to 121,300 serviceable addresses for Ting owned infrastructure. Our partner markets are also ramping up with 54% growth in addresses year over year. This brings us to 150,700 total serviceable addresses across all Ting footprints. Ting subscribers grew 26% year over year in the Q4, taking us to over 43,000 in total. Speaker 100:13:23Revenue for Q4 grew 21% year over year to $13,800,000 and gross margin grew 9.3% year over year to $7,900,000 Adjusted EBITDA came in negative $12,400,000 As I have previously stated, this number is too high. We have started to address it this quarter and will continue to until we are in a more appropriate position. Our fiber capex has increased from Q3 of 2023, but at $18,000,000 for Q4 is still lower than our spends earlier in the year. In Q3, that was mostly a reflection of our transition to a new microtrenching vendor in Alexandria. In Q4 and into 2024, you will see us a little more considered as the fiber market continues to evolve. Speaker 100:14:14Heading into 2024, the coax to fiber transition is coming into sharper relief. We are now well into this process. We have always talked about every fiber market as having the same three ingredients of capital, construction, and ISP operation. We have always identified the strategic element of those 3 for us as the ISP. Any financial sponsor, be it private equity, infra fund or family office, see capital as their strategic element. Speaker 100:14:47Our mid market fiber colleagues all have existing financial sponsors, thus are much more focused on fully integrated operations. We see larger and larger pools of capital focus on the infrastructure side of the market, and we do not see many others focusing on being partner ISPs. As we look at Ting in 2024, we see this clearly. The 2 largest markets for us will be Colorado Springs and Memphis, 2 of the top 40 cities in the US and both partner markets. In 2024, we expect more additional opportunities to come in the partner space relative to building organically. Speaker 100:15:30That does not take away from the organic build plan that we have, but we are following the money as the very biggest pools of capital are attracted to the partner space. We also continue to watch the 1st wave of companies who were externally funded at this coax to fiber cycle having to come back to the market and not finding it as receptive as when the original financings were done. 2024 promises to be interesting in this regard. Our years of experience with partner markets has taught us that their biggest drawback is inconsistent delivery. Over the years, this has led to us wasting significant amounts of operating dollars on marketing and other operations. Speaker 100:16:13At the same time, we have developed real competency in our construction operations. We have started investigating how we can use our construction skills to help with better partner delivery. The good news here is that partners are very open to these discussions. Over time, we also expect to get more involved in creating new opportunities and choosing markets with selected partners. As part of our increased focus on partner opportunities, loading our current networks, and building out our current footprints, we looked closely at the underlying operation. Speaker 100:16:51We saw that Ting's business needs have evolved and are ultimately different today than when we first started 10 years ago. We spent a decade building a large, complicated business. We are now moving from building core business functions to being able to run and operate them efficiently. We've realized that some business functions have changed, and some are not as material as we originally envisioned. Because of this, we made the decision to reduce the Ting workforce to match the current operational priorities of the business. Speaker 100:17:25This impacted 72 employees, approximately 13% of Ting's workforce. As well, we've made the decision to cease activity related to our partner market in Mesa, Arizona, and to reprioritize resources on other opportunities. Since we announced Mesa last March, we've been working with our infrastructure partner to talk through issues of competition and overbuilding. We continue to prefer markets with only 1 fiber overbuilder. We recently announced a new organic build in Thornton, Colorado, which will add approximately 60,000 serviceable addresses to our Denver footprint. Speaker 100:18:08Construction will start in the next few months and service is expected to be live later this year. Although our largest opportunities will be with partner markets, we will continue to thoughtfully add organic builds in existing footprints where economics and logistics work. For example, if we're in the back half of an organic build in a nearby market, the new market is essentially a market expansion that utilizes our existing local operation. We're excited about Thornton as the city has been highly engaged and is eager to facilitate a fiber build out there. Now we'll hear from Tucows CFO, Dave Singh, who will discuss our financial results in detail. Speaker 400:18:49Thanks, Elliot. Total revenue for the Q4 of 2023 increased 10.2% to $87,000,000 compared to $78,900,000 for the Q4 of 2022. When looking across the different businesses, Ting had revenue gains of 21% year over year, increasing to $13,800,000 in Q4 2023 from $11,500,000 in Q4 2022. Waylo's revenues increased 113 percent to $9,500,000 in Q4 2023 from $4,500,000 in Q4 2022. The revenue for Tucows domains for Q4 was up 2.6 percent increasing to $61,800,000 from $60,300,000 in Q4 2022. Speaker 400:19:28There was a small offset to the revenue gains of the 3 businesses by a decline in corporate segment revenues of 34% year over year from $2,700,000 in Q4 2022 to $1,800,000 in Q4 2023. The decline was primarily driven by lower revenues from legacy mobile subscribers retained in the sale of Ting Mobile subscribers to DISH, as well as higher intercompany eliminations. Gross profit before network costs for the Q4 increased 19.5 percent year over year to $35,500,000 from $29,700,000 in Q4 2022. As a percentage of revenue, gross profit before network costs increased this quarter to 41% compared to 38% for Q4 2022. Breaking down gross profit by business, Tucant's domain's gross profit for the Q4 of 2023 increased 2.5% from Q4 of last year to $18,900,000 from $18,400,000 As a percentage of revenue, gross margin for 2 guys' domains remained unchanged year over year at 31% for Q4 2023. Speaker 400:20:27Wavellow's gross profit increased by 142 percent to 9,200,000 this quarter from 3,800,000 for q4 2022 as Wavell finished its 2nd quarter with fully loaded Boost subscribers. As a percentage of revenue, gross margin for Wavellow was 97% this quarter, which is up from 85% in Q4 of last year. The increased margin is a reflection of Wavellow's increased efficiency from the fully migrated DISH subscriber base. Ting gross profit for Q4 increased 9.3 percent year over year to $7,900,000 from $7,200,000 for the same period of last year. As a percentage of revenue, gross margin for Ting was 57% in the Q4 of 2023, down from 63% in Q4 of last year. Speaker 400:21:07Network expenses for Q4 increased 39 percent to $17,600,000 from $12,700,000 for the same period last year. This increase continues to be driven primarily by higher depreciation of our expanding fiber network assets, up 19.5% year over year, as well as people costs of managing our expanding network. Total operating expenses for the Q4 of 2023 increased 13% to $33,900,000 from $30,000,000 for the same period last year. The increase is primarily the result of expansion of the Ting and Wavellow businesses, specifically in the following call centers. People costs were up $2,200,000 with increased workforce costs to support business expansion related to the growth of Ting and Wavelet. Speaker 400:21:47Marketing costs increased $1,700,000 year over year, mainly driven by increased investments in the Ting Internet business expansion. 3rd party contractor costs, professional fees, travel, and facilities costs were up $2,000,000 There were offsets to the operating expense decreases, including stock based compensation decreased 1,600,000, primarily from sizable subsidiary grants in Q4 2022. Foreign exchange gains reduced expenses by $200,000 this quarter. And finally, impact from depreciation of property and equipment and amortization of intangible assets is down 0.2 1,000,000 dollars I will also note that on February 7, 2024, Ting undertook a reduction in workforce to reflect ongoing operational prioritizations of the Ting business and to lower the company's year over year operating expenses. We estimate incurring non recurring charges of approximately $4,000,000 primarily consisting of severance payments, notice pay, employee benefits contributions and up placement costs. Speaker 400:22:39We expect that the implementation of the headcount reductions, majority of the restructuring charges and cash payments will be incurred in the Q1 of fiscal 2024. As a percent of revenue, year over year operating expenses were relatively stable at just under 39% for Q4 this year and 38% for the same period last year. We reported a net loss for the Q4 of 2023 of $23,400,000 or a loss of $2.14 per share compared with a net loss of $13.5 or $1.25 per share for the Q4 of 2022. The net loss is primarily the result of the ongoing investment in construction of Ting's fiber networks and scaling up of the associated operations, higher network depreciation and higher interest expenses from both higher interest rates and increased debt. Please note that our tax expense reflects our geographic mix with taxes payable in Canada and our legacy domains business. Speaker 400:23:28Adjusted EBITDA for Q4 was $2,600,000 down 62% from $6,700,000 for Q4 2022, primarily driven by our investment in the Ting business. The total breaks down amongst our 3 businesses as follows: Adjusted EBITDA for Tucano's Domains was $10,800,000 up 2.1 percent from Q4 of last year. Adjusted EBITDA for Wavelo was $2,600,000 an increase of $3,700,000 from a loss of $1,100,000 last year. Adjusted EBITDA for Ting was negative $12,400,000 compared with negative $6,000,000 in Q4 2022 as we continue to invest in our fiber network expansion. And finally, the corporate category had adjusted EBITDA of $1,500,000 this quarter, down from $3,300,000 in Q4 last year. Speaker 400:24:09The decrease was primarily driven by lower contribution from the legacy mobile base and higher intercompany eliminations. Turning to our balance sheet, cash and cash equivalents at the end of Q4 were $92,700,000 compared with $110,700,000 at the end of the Q3 of 2023 $23,500,000 at the end of the Q4 of 2022. In addition to the $92,700,000 we have $12,300,000 classified as restricted cash as part of the ABS transaction last May. As a reminder, of the $12,300,000 of restricted cash, dollars 8,700,000 will sit in the trust account for the duration of the ABS notes. The remaining $3,600,000 reflects the cash collections from securitized assets and is distributed monthly as interest to note holders, fees to third parties and with the remaining funds coming back to Ting. Speaker 400:24:52I'll also note that we generated $1,300,000 in interest income this quarter. During the quarter, we had $9,000,000 in cash from operations compared with $2,900,000 in Q4 last year, with the increase driven primarily by working capital timing and efficiency and a timing reset of quarterly syndicated interest payments into the 1st week of the following quarter. We invested $14,600,000 in property and equipment, primarily for the continued build out of the Ting fiber network, in addition to the continued investment in the Wavelo platform. Note that this number reflects the actual cash paid for capital assets in the quarter on a cash flow statement and includes capitalized cash interest. As of December 31, 2023, our syndicated loan balance for covenant calculation purposes was a net $205,000,000 when factoring in letters of credit and cash on hand of up to $7,500,000 which resulted in a leverage ratio of 3.42 times. Speaker 400:25:46This is the 3rd consecutive quarter we have reduced the leverage ratio. We repaid a net $11,500,000 on the balance of the loan this quarter and expect quarterly repayments to continue. Finally, deferred revenue at the end of Q4 was $148,000,000 down from $150,000,000 for the Q3 of 2023, but up from $145,000,000 for the Q4 of last year. This is primarily due to the stabilization of Domains revenues now that the pandemic impacts have normalized. That concludes my remarks, and I'll now turn it back to Elliot. Speaker 100:26:14Thanks, Dave. Let me start with guidance for our businesses for 2024. For Tucows domains, we're giving adjusted EBITDA guidance of $43,000,000 For Wavelo, we're giving guidance of $8,000,000 to $10,000,000 And for our corporate segment, dollars 2,000,000 to $4,000,000 for a total of $53,000,000 to $57,000,000 Given the recent changes at Ting, we're working through a more refined guidance estimate for that business, which we will share with you when we have it, but in no event later than next quarter's results and with an intention of reducing the EBITDA loss. As I start to look out over 2024, I see clear paths for all three businesses. For Tucows domains, turn the new offerings into real contributors. Speaker 100:27:07For Wavelo, generate a pipeline of new customers. For Ting, clean up the balance sheet and load the network. With Ting, I find myself thinking about time and timing. Time in the sense of the pace of the coax to fiber transition in the US. Timing in the sense that when one engages in anything dealing with the balance sheet or the cap table, When is often more important than what. Speaker 100:27:36And timing of the coax to fiber transition is one arc, while macroeconomic conditions are another. Let's call those micro and macro, fiber and the general economy. We feel very good about where we are in the fiber arc. We and the industry are now comfortably into the execution phase of this cycle. We see a lot of building activity across the country. Speaker 100:28:01We believe the industry is 18 to 36 months away from most footprints that will be part of this cycle being commenced. There will still be 3 to 5 years of building after that, but in our view, it is too late for new entrants, and it will shortly be too late for new footprints. We are well positioned in the 1st tier of middle market players. While we have capital to take us through the next leg of our build, I have been clear that this level of EBITDA losses and this level of debt are not acceptable. This is primarily because we do not want to risk being in a position of need in this macro environment. Speaker 100:28:44That means we are looking to strengthen our balance sheet. As I have said numerous times over numerous earnings calls, we are lucky to have lots of different arrows of the quiver. We are not, however, in the best macro environment to be dealing with this. There are 2 thoughts I want to be clear about, and these two thoughts are the reason I have presented this story to this point. 1st, the microarc dominates the macroarc. Speaker 100:29:12By that I mean that making sure that Ting is in position to benefit from this generational transition to infrastructure purpose built for the internet is the most important thing. The fiber to the home business takes a lot of capital, effort, and patience. It makes money slowly and for a long time. 2nd, strengthening the balance sheet is a means to an end. Whatever we do in the nearer term will simply be putting us in a position to create long term value for shareholders for a long time to come. Speaker 100:29:51If we would have sat down in 2014 and showed ourselves the future in 2024, we would have been very pleased. We would have seen a strong and growing fiber footprint, a fascinating evolution of the structural separation between ownership of infrastructure and operating an ISP. And most importantly, we would have seen Ting as an ISP with industry leading take rate, churn and customer satisfaction, all of which is a recipe for long term success. And with that, I look forward to your written questions and exploring areas that interest you in greater detail. Again, please send your questions to irtucows.com by February 29th and look for our recorded Q and A audio response and transcript to this call to be posted to the Tucows website on Tuesday, March 12th, at approximately 4 pm Eastern Time. Speaker 100:30:48Thank you.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallTucows Q4 2023 Prepared Remarks00:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckInterim report Tucows Earnings HeadlinesTucows Announces Timing for Q1 2025 Financial Results News Release and Management CommentaryApril 24 at 7:30 AM | prnewswire.comTucows Announces Director Nominations and Honors Departing Board MembersApril 10, 2025 | prnewswire.comHere’s How to Claim Your Stake in Elon’s Private Company, xAIElon Musk has done it again. He’s developed a powerful new AI model that’s already turning heads — and turning the industry upside down. Some say it could threaten Google’s search engine dominance. Others believe it could mark the beginning of the end for ChatGPT.April 26, 2025 | Brownstone Research (Ad)Tucows Announces Director Nominations and Honors Departing Board MembersApril 10, 2025 | prnewswire.comTop Analyst Reports for Walt Disney, Progressive & CitigroupMarch 27, 2025 | finance.yahoo.comTucows issues amendment to Q4 2024 earningsMarch 13, 2025 | prnewswire.comSee More Tucows Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Tucows? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Tucows and other key companies, straight to your email. Email Address About TucowsTucows (NASDAQ:TCX) provides network access, domain name registration, email, mobile telephony, and other Internet services in North America and Europe. It operates in three segments: Ting, Wavelo and Tucows Domains. The Ting segment provides fiber and fixed wireless internet services. The Wavelo segment offers individual developer tools, subscription, billing management, network orchestration, and provisioning services. This segment also provides billing solutions under Platypus brand. The Tucows Domains segment offers name registration, as well as value added services under OpenSRS, eNom, Ascio, EPAG, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.View Tucows ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Markets Think Robinhood Earnings Could Send the Stock UpIs the Floor in for Lam Research After Bullish Earnings?Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Starbucks (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 5 speakers on the call. Operator00:00:00Welcome to Tuca's 4th quarter 2023 management commentary. We have pre recorded prepared remarks regarding the quarter and outlook for the company. A Tuca's generated transcript of these remarks with relevant links is also available on the company's website. In lieu of a live question and answer period following these remarks, shareholders, analysts and prospective investors are invited to submit questions to Tucows' management. Please submit questions via email to irtucows.com until Thursday, February 29th. Operator00:00:33Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the TUCAS website on Tuesday, March 12th, at approximately 4 pm Eastern time. We would also like to advise that the updated Tucows quarterly KPI summary, which provides key metrics for all of our businesses for the last 8 quarters, as well as for full years 2021, 2022, and 2023, and also includes historical financial results, is available in the investor section of the website, along with the updated Ting build scorecard and investor presentation. Now for management's prepared remarks. On Thursday, February 22, Tucows issued a news release reporting its financial results for the Q4 ended December 31, 2023. That news release and the company's financial statements are available on the company's website at tucows.com under the investors section. Operator00:01:34Please note that the following discussion may include forward looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the forms 10 ks and 10 Q. The company urges you to read its security filings for a full description of the risk factors applicable to its business. I would now like to turn the call over to Tucows' President and Chief Executive Officer, Elliot Noss. Go ahead, Speaker 100:02:07Elliot. Thanks, Monica. We finished 2023 with positive momentum in all of our businesses. Tucows adjusted EBITDA for 2023 outside of Ting was $59,600,000 and with Ting was $15,500,000 at the higher end of our annual guidance range. This was driven by robust growth from Wavellow and consistent performance of Tucows domains and offset by our continued investment in TIG. Speaker 100:02:38Tucows consolidated revenue grew 10% year over year and a strong finish to the year helped drive Tucao's operating cash flow to $9,000,000 in the 4th quarter, up from $2,900,000 in Q4 of last year. We also repaid a further $11,500,000 on the balance of the daunting syndicated loan this quarter, which takes us to $28,000,000 paid down in 2023. Now that we've continued deleveraging and are squarely focused on addressing the financing challenges of the Ting business, which spilled over to TCX. We are more and more getting back to Tucows being a cash generating machine, which is the right place to be in today's macroeconomic environment. Again, this year, we've authorized a buyback program for up to $40,000,000 of Tucows stock. Speaker 100:03:31We do this every year, whether or not we can foresee using it at the time we do the authorization. This is a formality. Now, we'll hear from the heads of each business, as well as from our CFO, Dave Singh, who will cover our financial results in detail. The first speaker is Dave Warwick, Chief Executive Officer, Tucows Domains. Go ahead, Dave. Speaker 200:03:52Thanks, Elliot. As we close out our fiscal 2023, I'm particularly pleased that TCAS domains grew revenue and gross margin on a quarter over quarter basis through successive quarters of 2023. Our core business is healthy and we're rolling out new products for our resellers. And importantly, Tucows Domains continues to generate cash for the company that is being used to pay down the debt and build the runway for Tucows long term growth. In Q4, we saw slight gains across all our top level metrics, including domains under management and transactions. Speaker 200:04:30Revenue for domain services for the Q4 was 61,800,000, dollars up 2.5 percent from $60,300,000 for the same quarter last year. Gross margin was $18,900,000 also up 2.5% from the same quarter last year. And Domain Services adjusted EBITDA, which was $10,800,000 in the 4th quarter, was up 2% from Q4 of last year, as we continue to be attentive to managing expenses. The results were driven by an increase in the number of transactions in Q4, up 2% and domains under management that were up slightly year over year. I would like to highlight that within our industry, there is a range in the quality of new domains being registered and our growth continues to be concentrated in higher quality and legitimate domain registrations. Speaker 200:05:24Looking at the results from the segments of our business, in our wholesale channel, revenue for Q4 was up 2% compared to Q4 of last year and gross margin was essentially unchanged year over year. Within the wholesale channel, Domain Services gross margin was up 4% in Q4 compared to the same period last year, while value added services gross margin was down 8%. I'll note that the decline in the Domains aftermarket that I covered in the last couple of quarters is no longer a factor for value added services. The Q4 decline in value added services was actually a result of something we periodically do at the resellers request, which is to move their customers from the wholesale business to our retail business, which shifts the associated revenues and margin from value added services to retail. In our retail channel, revenue was up 4.5% and gross margin was up 8% year over year. Speaker 200:06:28The outsized retail margin was a result of the shift of customers I mentioned, which started in Q4 and will impact retail margin numbers over the course of 12 months. Our combined overall renewal rate at 76.5 percent in Q4 across all Tucows Domains brands remains within our historical range and above the industry average. I also have a short update and further background on the new billing and provisioning service and the automation tools that enable resellers to transition to cloud hosting. We have these in the hands of a number of resellers who are providing us feedback and helping us iterate. If you would like more detail on these new services, please refer to my comments last quarter. Speaker 200:07:18And as a reminder, we've developed these new products within our existing cost structure, which means we're able to prove the concept with investment that is invisible to investors and improve it along the way without major cost impacts. It is the margin of these new products that is so compelling to us. Tucows Domains has been generating about 75,000,000 in gross margin for several years in a mature and competitive industry with limited prospects for growth. We've been very comfortable operating with the razor thin margins of our current domains business. In fact, as many of you know, we have successfully turned this into a moat around the business. Speaker 200:08:04However, the margins from these two new opportunities are significantly higher than our typical domain name margins. Deploying higher margin products is critical for us to meaningfully get beyond the 75,000,000 gross margin range. I am optimistic about the potential for these new services and I will keep you apprised of their progress. Now over to Justin Reilly, CEO of Wavelo. Speaker 300:08:33Thanks, Dave. 2023 marks Wavelo's 2nd full year as an independent business. A year ago and at Investor Day, I shared how pleased I was with the foundation laid to generate $25,000,000 to $30,000,000 in revenue. As we sit here today, Wavelo generated $38,700,000 in revenue in 2023, averaging north of a 50% compound annual growth rate over the last 2 years, while other B2B SaaS companies' growth rates nearly halved over the same period. Gross margin for the full year 2023 was $36,000,000 up from $21,400,000 in 2022. Speaker 300:09:13Adjusted EBITDA was $10,600,000 outperforming our upgraded guidance of $4,000,000 to $6,000,000 and up from $3,900,000 last year. This full year performance represents what this business can be when its customers reach a level of scale on the platform. That said, I want to be clear that we expect growth to come in much lower in 2024 as we invest in new customers and battle an increasingly competitive software market. This is in the context of a startup macro environment that is in the midst of a flight to quality. Remember, our slight step back in profitability is everyone else's cash burn. Speaker 300:09:51In the quarter, Wavellow's revenues were $9,500,000 down 13.8% from Q3 and up 113% from Q4 2022. Gross margin was $9,200,000 in Q4, down 12.3% from Q3 and up 142% year over year. Adjusted EBITDA for Q4 was 2 point $6,000,000 down 38% from Q3 and up 3 28% year over year. The quarter over quarter trend represents a couple of things. First, we recognize extra deferred revenue from DISH every year in Q3, which provides a bump across all metrics in the Q3. Speaker 300:10:34And second, DISH's shift in focus from prepaid to postpaid as those subscriber bases haven't yet stabilized. In addition, the adjusted EBITDA trend quarter over quarter reflects an increased investment in our growth teams to support the coming years. The Wave Low story is yet another chapter in a 30 year history of Tucows leveraging existing assets, competencies and relationships in service of customer and shareholder value. This was true in OpenSRS. It was true in both Ting businesses and it is now true in Waveflow. Speaker 300:11:07An intense focus on simplicity, efficiency and customer experience drives our day to day operations, as well as our long term view of the opportunity in telecom software. It is at the heart of that opportunity that I'm happy to announce that since I last reported, we've added 3 new customers to the Waveflow family. These represent a mix of net new logos and cloud upgrades that I discussed last quarter, further reinforcing the strong appetite for telecoms to move to the cloud and shift towards more customer centric software. As I shared at Investor Day, we are seeing solid traction with small to midsize ISPs with a focus on automating end to end billing and provisioning, as well as adding mobile as a value added service. Unlike MNOs, these operators are on their 1st REIT platform and have a tremendous opportunity to leapfrog the legacy software pitfalls in telecom. Speaker 300:12:00In the quarter, the team continued the trend of adding new qualified opportunities to the pipeline. With this steady pipeline, our focus is on building a machine that elegantly closes and onboards customers without all of the pain that is all too common in these implementations. We have a busy year ahead of us navigating the laborious procurement cycles that telecom is famous for. I'll remind investors that our sales and marketing team is small but mighty, representing a much smaller spend as a percentage of revenue than our competitors. In 2024, we expect to grow the team in service of growing the pipeline, while focusing on efficiency and staying well below the market on spend. Speaker 300:12:39Thanks for listening. And now over to Elliot. Speaker 100:12:43Thanks, Justin. Q4 was another very strong quarter of construction for TIG, resulting in 27% year over year growth of completed serviceable addresses, taking us to 121,300 serviceable addresses for Ting owned infrastructure. Our partner markets are also ramping up with 54% growth in addresses year over year. This brings us to 150,700 total serviceable addresses across all Ting footprints. Ting subscribers grew 26% year over year in the Q4, taking us to over 43,000 in total. Speaker 100:13:23Revenue for Q4 grew 21% year over year to $13,800,000 and gross margin grew 9.3% year over year to $7,900,000 Adjusted EBITDA came in negative $12,400,000 As I have previously stated, this number is too high. We have started to address it this quarter and will continue to until we are in a more appropriate position. Our fiber capex has increased from Q3 of 2023, but at $18,000,000 for Q4 is still lower than our spends earlier in the year. In Q3, that was mostly a reflection of our transition to a new microtrenching vendor in Alexandria. In Q4 and into 2024, you will see us a little more considered as the fiber market continues to evolve. Speaker 100:14:14Heading into 2024, the coax to fiber transition is coming into sharper relief. We are now well into this process. We have always talked about every fiber market as having the same three ingredients of capital, construction, and ISP operation. We have always identified the strategic element of those 3 for us as the ISP. Any financial sponsor, be it private equity, infra fund or family office, see capital as their strategic element. Speaker 100:14:47Our mid market fiber colleagues all have existing financial sponsors, thus are much more focused on fully integrated operations. We see larger and larger pools of capital focus on the infrastructure side of the market, and we do not see many others focusing on being partner ISPs. As we look at Ting in 2024, we see this clearly. The 2 largest markets for us will be Colorado Springs and Memphis, 2 of the top 40 cities in the US and both partner markets. In 2024, we expect more additional opportunities to come in the partner space relative to building organically. Speaker 100:15:30That does not take away from the organic build plan that we have, but we are following the money as the very biggest pools of capital are attracted to the partner space. We also continue to watch the 1st wave of companies who were externally funded at this coax to fiber cycle having to come back to the market and not finding it as receptive as when the original financings were done. 2024 promises to be interesting in this regard. Our years of experience with partner markets has taught us that their biggest drawback is inconsistent delivery. Over the years, this has led to us wasting significant amounts of operating dollars on marketing and other operations. Speaker 100:16:13At the same time, we have developed real competency in our construction operations. We have started investigating how we can use our construction skills to help with better partner delivery. The good news here is that partners are very open to these discussions. Over time, we also expect to get more involved in creating new opportunities and choosing markets with selected partners. As part of our increased focus on partner opportunities, loading our current networks, and building out our current footprints, we looked closely at the underlying operation. Speaker 100:16:51We saw that Ting's business needs have evolved and are ultimately different today than when we first started 10 years ago. We spent a decade building a large, complicated business. We are now moving from building core business functions to being able to run and operate them efficiently. We've realized that some business functions have changed, and some are not as material as we originally envisioned. Because of this, we made the decision to reduce the Ting workforce to match the current operational priorities of the business. Speaker 100:17:25This impacted 72 employees, approximately 13% of Ting's workforce. As well, we've made the decision to cease activity related to our partner market in Mesa, Arizona, and to reprioritize resources on other opportunities. Since we announced Mesa last March, we've been working with our infrastructure partner to talk through issues of competition and overbuilding. We continue to prefer markets with only 1 fiber overbuilder. We recently announced a new organic build in Thornton, Colorado, which will add approximately 60,000 serviceable addresses to our Denver footprint. Speaker 100:18:08Construction will start in the next few months and service is expected to be live later this year. Although our largest opportunities will be with partner markets, we will continue to thoughtfully add organic builds in existing footprints where economics and logistics work. For example, if we're in the back half of an organic build in a nearby market, the new market is essentially a market expansion that utilizes our existing local operation. We're excited about Thornton as the city has been highly engaged and is eager to facilitate a fiber build out there. Now we'll hear from Tucows CFO, Dave Singh, who will discuss our financial results in detail. Speaker 400:18:49Thanks, Elliot. Total revenue for the Q4 of 2023 increased 10.2% to $87,000,000 compared to $78,900,000 for the Q4 of 2022. When looking across the different businesses, Ting had revenue gains of 21% year over year, increasing to $13,800,000 in Q4 2023 from $11,500,000 in Q4 2022. Waylo's revenues increased 113 percent to $9,500,000 in Q4 2023 from $4,500,000 in Q4 2022. The revenue for Tucows domains for Q4 was up 2.6 percent increasing to $61,800,000 from $60,300,000 in Q4 2022. Speaker 400:19:28There was a small offset to the revenue gains of the 3 businesses by a decline in corporate segment revenues of 34% year over year from $2,700,000 in Q4 2022 to $1,800,000 in Q4 2023. The decline was primarily driven by lower revenues from legacy mobile subscribers retained in the sale of Ting Mobile subscribers to DISH, as well as higher intercompany eliminations. Gross profit before network costs for the Q4 increased 19.5 percent year over year to $35,500,000 from $29,700,000 in Q4 2022. As a percentage of revenue, gross profit before network costs increased this quarter to 41% compared to 38% for Q4 2022. Breaking down gross profit by business, Tucant's domain's gross profit for the Q4 of 2023 increased 2.5% from Q4 of last year to $18,900,000 from $18,400,000 As a percentage of revenue, gross margin for 2 guys' domains remained unchanged year over year at 31% for Q4 2023. Speaker 400:20:27Wavellow's gross profit increased by 142 percent to 9,200,000 this quarter from 3,800,000 for q4 2022 as Wavell finished its 2nd quarter with fully loaded Boost subscribers. As a percentage of revenue, gross margin for Wavellow was 97% this quarter, which is up from 85% in Q4 of last year. The increased margin is a reflection of Wavellow's increased efficiency from the fully migrated DISH subscriber base. Ting gross profit for Q4 increased 9.3 percent year over year to $7,900,000 from $7,200,000 for the same period of last year. As a percentage of revenue, gross margin for Ting was 57% in the Q4 of 2023, down from 63% in Q4 of last year. Speaker 400:21:07Network expenses for Q4 increased 39 percent to $17,600,000 from $12,700,000 for the same period last year. This increase continues to be driven primarily by higher depreciation of our expanding fiber network assets, up 19.5% year over year, as well as people costs of managing our expanding network. Total operating expenses for the Q4 of 2023 increased 13% to $33,900,000 from $30,000,000 for the same period last year. The increase is primarily the result of expansion of the Ting and Wavellow businesses, specifically in the following call centers. People costs were up $2,200,000 with increased workforce costs to support business expansion related to the growth of Ting and Wavelet. Speaker 400:21:47Marketing costs increased $1,700,000 year over year, mainly driven by increased investments in the Ting Internet business expansion. 3rd party contractor costs, professional fees, travel, and facilities costs were up $2,000,000 There were offsets to the operating expense decreases, including stock based compensation decreased 1,600,000, primarily from sizable subsidiary grants in Q4 2022. Foreign exchange gains reduced expenses by $200,000 this quarter. And finally, impact from depreciation of property and equipment and amortization of intangible assets is down 0.2 1,000,000 dollars I will also note that on February 7, 2024, Ting undertook a reduction in workforce to reflect ongoing operational prioritizations of the Ting business and to lower the company's year over year operating expenses. We estimate incurring non recurring charges of approximately $4,000,000 primarily consisting of severance payments, notice pay, employee benefits contributions and up placement costs. Speaker 400:22:39We expect that the implementation of the headcount reductions, majority of the restructuring charges and cash payments will be incurred in the Q1 of fiscal 2024. As a percent of revenue, year over year operating expenses were relatively stable at just under 39% for Q4 this year and 38% for the same period last year. We reported a net loss for the Q4 of 2023 of $23,400,000 or a loss of $2.14 per share compared with a net loss of $13.5 or $1.25 per share for the Q4 of 2022. The net loss is primarily the result of the ongoing investment in construction of Ting's fiber networks and scaling up of the associated operations, higher network depreciation and higher interest expenses from both higher interest rates and increased debt. Please note that our tax expense reflects our geographic mix with taxes payable in Canada and our legacy domains business. Speaker 400:23:28Adjusted EBITDA for Q4 was $2,600,000 down 62% from $6,700,000 for Q4 2022, primarily driven by our investment in the Ting business. The total breaks down amongst our 3 businesses as follows: Adjusted EBITDA for Tucano's Domains was $10,800,000 up 2.1 percent from Q4 of last year. Adjusted EBITDA for Wavelo was $2,600,000 an increase of $3,700,000 from a loss of $1,100,000 last year. Adjusted EBITDA for Ting was negative $12,400,000 compared with negative $6,000,000 in Q4 2022 as we continue to invest in our fiber network expansion. And finally, the corporate category had adjusted EBITDA of $1,500,000 this quarter, down from $3,300,000 in Q4 last year. Speaker 400:24:09The decrease was primarily driven by lower contribution from the legacy mobile base and higher intercompany eliminations. Turning to our balance sheet, cash and cash equivalents at the end of Q4 were $92,700,000 compared with $110,700,000 at the end of the Q3 of 2023 $23,500,000 at the end of the Q4 of 2022. In addition to the $92,700,000 we have $12,300,000 classified as restricted cash as part of the ABS transaction last May. As a reminder, of the $12,300,000 of restricted cash, dollars 8,700,000 will sit in the trust account for the duration of the ABS notes. The remaining $3,600,000 reflects the cash collections from securitized assets and is distributed monthly as interest to note holders, fees to third parties and with the remaining funds coming back to Ting. Speaker 400:24:52I'll also note that we generated $1,300,000 in interest income this quarter. During the quarter, we had $9,000,000 in cash from operations compared with $2,900,000 in Q4 last year, with the increase driven primarily by working capital timing and efficiency and a timing reset of quarterly syndicated interest payments into the 1st week of the following quarter. We invested $14,600,000 in property and equipment, primarily for the continued build out of the Ting fiber network, in addition to the continued investment in the Wavelo platform. Note that this number reflects the actual cash paid for capital assets in the quarter on a cash flow statement and includes capitalized cash interest. As of December 31, 2023, our syndicated loan balance for covenant calculation purposes was a net $205,000,000 when factoring in letters of credit and cash on hand of up to $7,500,000 which resulted in a leverage ratio of 3.42 times. Speaker 400:25:46This is the 3rd consecutive quarter we have reduced the leverage ratio. We repaid a net $11,500,000 on the balance of the loan this quarter and expect quarterly repayments to continue. Finally, deferred revenue at the end of Q4 was $148,000,000 down from $150,000,000 for the Q3 of 2023, but up from $145,000,000 for the Q4 of last year. This is primarily due to the stabilization of Domains revenues now that the pandemic impacts have normalized. That concludes my remarks, and I'll now turn it back to Elliot. Speaker 100:26:14Thanks, Dave. Let me start with guidance for our businesses for 2024. For Tucows domains, we're giving adjusted EBITDA guidance of $43,000,000 For Wavelo, we're giving guidance of $8,000,000 to $10,000,000 And for our corporate segment, dollars 2,000,000 to $4,000,000 for a total of $53,000,000 to $57,000,000 Given the recent changes at Ting, we're working through a more refined guidance estimate for that business, which we will share with you when we have it, but in no event later than next quarter's results and with an intention of reducing the EBITDA loss. As I start to look out over 2024, I see clear paths for all three businesses. For Tucows domains, turn the new offerings into real contributors. Speaker 100:27:07For Wavelo, generate a pipeline of new customers. For Ting, clean up the balance sheet and load the network. With Ting, I find myself thinking about time and timing. Time in the sense of the pace of the coax to fiber transition in the US. Timing in the sense that when one engages in anything dealing with the balance sheet or the cap table, When is often more important than what. Speaker 100:27:36And timing of the coax to fiber transition is one arc, while macroeconomic conditions are another. Let's call those micro and macro, fiber and the general economy. We feel very good about where we are in the fiber arc. We and the industry are now comfortably into the execution phase of this cycle. We see a lot of building activity across the country. Speaker 100:28:01We believe the industry is 18 to 36 months away from most footprints that will be part of this cycle being commenced. There will still be 3 to 5 years of building after that, but in our view, it is too late for new entrants, and it will shortly be too late for new footprints. We are well positioned in the 1st tier of middle market players. While we have capital to take us through the next leg of our build, I have been clear that this level of EBITDA losses and this level of debt are not acceptable. This is primarily because we do not want to risk being in a position of need in this macro environment. Speaker 100:28:44That means we are looking to strengthen our balance sheet. As I have said numerous times over numerous earnings calls, we are lucky to have lots of different arrows of the quiver. We are not, however, in the best macro environment to be dealing with this. There are 2 thoughts I want to be clear about, and these two thoughts are the reason I have presented this story to this point. 1st, the microarc dominates the macroarc. Speaker 100:29:12By that I mean that making sure that Ting is in position to benefit from this generational transition to infrastructure purpose built for the internet is the most important thing. The fiber to the home business takes a lot of capital, effort, and patience. It makes money slowly and for a long time. 2nd, strengthening the balance sheet is a means to an end. Whatever we do in the nearer term will simply be putting us in a position to create long term value for shareholders for a long time to come. Speaker 100:29:51If we would have sat down in 2014 and showed ourselves the future in 2024, we would have been very pleased. We would have seen a strong and growing fiber footprint, a fascinating evolution of the structural separation between ownership of infrastructure and operating an ISP. And most importantly, we would have seen Ting as an ISP with industry leading take rate, churn and customer satisfaction, all of which is a recipe for long term success. And with that, I look forward to your written questions and exploring areas that interest you in greater detail. Again, please send your questions to irtucows.com by February 29th and look for our recorded Q and A audio response and transcript to this call to be posted to the Tucows website on Tuesday, March 12th, at approximately 4 pm Eastern Time. Speaker 100:30:48Thank you.Read morePowered by